Suzanne Breen - the Sunday Tribune journalist who won a court battle to protect source material related to stories she had written about the Real IRA - is to receive libel damages from the NUJ over comments published in the union's magazine, the Journalist.
The Journalist apologised to Breen in October 2009 over a letter which was published by the magazine.
BBC News reports: "Her libel action against the union, of which she is a member, was set to begin shortly at the High Court in Belfast. However, the judge was told a resolution had been reached following negotiations."
Her lawyer, Paul Tweed, told the BBC that Breen had taken the case with "the greatest of reluctance".
"However, such was the gravity and outrageous nature of the offending allegations, which not only sought to undermine her professional integrity, but also could have prejudiced her personal security and that of her young family, that she was left with no choice but to issue these defamation proceedings," he said.
The amount of damages Breen will receive will not be revealed as part of the agreement.